George Stigler: Information is Power

It is July 4th weekend coming up. Woohoo! Some of you will be traveling and doing some mini vacations somewhere. I don’t know about my plans for the 4th just yet, but I know that I am going to try and head out somewhere. As long as I escape the nation’s capital on the nation’s birthday, I’m game. Continue reading “George Stigler: Information is Power”

The Economics of the “Return Trip Effect”

Have you ever walked to a particular location, say a friend’s house, and found that the walk actually was a lot farther than you had expected making it quite the unpleasant walk? But, you found that on the way back the walk seemed to go by much more quickly? There’s a scientific name term for this. It’s called the “return trip effect” (RTE). Continue reading “The Economics of the “Return Trip Effect””

Using Innovism Instead of Capitalism

McCloskey’s suggestion for changing the term “capitalism” into “innovism” might be a more practical way of arguing for free markets. Capitalism, as it’s tossed around in conversation, ends up getting misconstrued by both sides of the argument, because it lends itself to assume that societies have only become rich through the accumulation of capital. However, this is simply not true. It is ideas and the ability for entrepreneurs to assume the risks of employing the factors of production, by means of prices set in a market, to produce new (and perceived better) products or services to then turn around and sell them at uncertain prices in the market. The z, not the k, in our Solow model, if you will. This is “trade-tested betterment” as also proposed by McCloskey. Continue reading “Using Innovism Instead of Capitalism”

Fat Kids Unite: Seattle’s Soda Tax

To curb the rise of fat kids and raise some extra cash, cities across the country are attempting to tax sugar, particularly sodas. However, the potential health benefits might not outweigh the cost to consumers and businesses, especially in poor areas. Continue reading “Fat Kids Unite: Seattle’s Soda Tax”